[ARCHIVE] Make Your Move

Still Battling Economic Uncertainty? Expect Better Days Ahead for the US Economy

Uncertainty related to political decisions has led business leaders to wait on important cash expenditures. Resolving the issues will help boost economic activity in the first half of 2013.

Uncertainty related to pending decisions in Washington has been holding many business leaders back from making key decisions related to cash expenditures.  This in turn has a negative impact on the economy.  The hope is that the President and Congress, the latter being essentially unchanged in composition, will face the hard realities relative to the fiscal cliff and tax reform and clarify expectations.  Business needs an answer. 

The question is whether the President and Congress will kick the proverbial can down the road or grapple with these important issues.  Kicking the can continues the uncertainty, and it will hurt businesses related to spending on capital goods. 

My understanding/expectation is that Congress, because it is of the same composition, will reach some sort of agreement on the fiscal cliff late this year or in early 2013 – removing an avowed cause of uncertainty and thereby providing a boost to economic activity. 

Adding to my positive outlook is the fact that virtually all of our leading indicators are pointing toward more economic expansion over the next two quarters.  This is the time to take advantage of pessimism and low prices.  Spend some money to upgrade operations in an effort to maximize efficiency.  

Discuss this Blog Entry 1

on Nov 14, 2012

Perhaps at worst the "cliff divers" win the day, but that will force the constituents to hammer their representatives to do something. there is even a school of thought that it would be to the presidents advantage to dive

Please or Register to post comments.

What's [ARCHIVE] Make Your Move?

Leverage actionable -- and 94.7% accurate -- economic forecasts from ITR Economics, and spot unfolding business cycle trends before your competitors.

Contributors

Brian Beaulieu

Brian Beaulieu has been an economist with ITR Economics since 1982 and its CEO since 1987. He is also Chief Economist for Vistage International and TEC, global organizations comprised of over 13,000...

Alan Beaulieu

One of the country’s most informed economists, Alan Beaulieu is a principal of the ITR Economics where he serves as President. ITR predicts future economic trends with 94.7% accuracy rate and...
Blog Archive

IW Marketplace - Buy a Link Now